Lyft Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brad Erickson - RBC Capital Markets - Analyst : Hey, thanks for taking my questions. First, just talk about the pricing environment. What are you seeing, and maybe just the puts and takes between sort of things within your control versus things out of your control? And then second, just on insurance, I know it's a little early to talk about this. But maybe any update, you can give on how you're thinking about that adding into the pricing formula through the year? Thanks.

Question: Brad Erickson - RBC Capital Markets - Analyst : Thanks.

Question: Ken Gawrelski - Wells Fargo - Analyst : Hi, thank for taking the question. I really appreciate it. I'm curious, just a couple of things. One is you -- the other guys, I think as you refer to them, has talked a lot about affordability initiatives in the US. I'm just curious just as you think about the go forward and and the many innovations you've rolled out on the product side, how you're thinking about just the go-forward there in your positioning in the market? And kind of from a pricing standpoint, how you -- what the pricing outlook is for the remainder of the year? And then in the second, if I may, please, you made an announcement to enter Europe. Could you just talk to us a little bit more -- and you're expanding in Canada. Could you just talk a little bit about your broader international ambitions? Should we think of this as the extent of it for the next select period of time or could we see more? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, LYFT.OQ - Q1 2025 Lyft Inc Earnings Call

Question: Eric Sheridan - Goldman Sachs - Analyst : Thank you so much for taking the question. Maybe I'll just ask one. You obviously made the announcement with May Mobility, and we're seeing a lot of different announcements in the broader AV landscape. We'd love to continue to sort of click down on how your views are evolving in terms of going to market with partners and what you think that might do in terms of the supply and demand dynamic in these cities where you bring that type of supply into your ecosystem? Thanks so much.

Question: Michael Morton Morton - MoffettNathanson - Analyst : Hey, good evening. Thank you for the question. To the extent you can talk about it. I know it's just announced, but I wanted to hear your thoughts on the ability to invest behind FREENOW, and then maybe how you're thinking about the business mix between taxis and rideshare for FREENOW going forward versus where that mixture stands today? And just quickly, David, as pricing increases subside, I'd love to hear about any changes you're seeing in consumer behavior that might lead them to spend more per month, just because there's less sticker shop, right, if you open, you look at your morning commute, wow, it's too much. But then you start opening, it's not going up as much and they actually end up using it more than they would have in their prior budget. So if you're maybe seeing more shopping engagement at this point, maybe they haven't like transitioned into actual conversion yet, but anything there would be very helpful? Thank you.

Question: Michael Morton Morton - MoffettNathanson - Analyst : Thank you.

Question: Nikhil Devnani - Bernstein - Analyst : Hi, thank you for taking my questions. I had two, please. First, on the taxi initiative you're rolling out in the US, do you think this can accelerate your growth in '25 and '26? Just trying to get a sense for the scale of it. And is there a long process to bring more taxis online and more markets or do you think this is something where you can move fairly quickly with new cities beyond St. Louis? And then my second question is around AV partnerships. Do the deals that Uber is striking, do they actually accelerate your ability to onboard partners because there's a playbook for these AV providers to rinse and repeat, so to speak? Or do you feel like you need to be the first one in the door because fleets are still really small and experimental, so there aren't enough cars to go around just yet? Thank you.

Question: Nikhil Devnani - Bernstein - Analyst : Just on the taxi initiative in the US and the roll out of more cities. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, LYFT.OQ - Q1 2025 Lyft Inc Earnings Call

Question: Nikhil Devnani - Bernstein - Analyst : Thanks, David.

Question: Stephen Ju - UBS Securities - Analyst : Okay, thank you so much. So David, I think, when you offered Lyft media targets back at the investor day, I think there was some amount of skepticism in the market as to whether you can actually hit those goals over the next few years. So but there was a very interesting angle, I thought, where to offer retailers and merchants, traffic based on the user's destination. Especially if they're headed to your store, right? So that sets you up to potentially on board performance ad budget. So can you talk about how this is progressing, and how the outreach efforts to these performance advertisers and undoubtedly also, to the awareness and brand upper funnel advertisers, how that's been progressing? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, LYFT.OQ - Q1 2025 Lyft Inc Earnings Call

Question: Stephen Ju - UBS Securities - Analyst : Thank you.

Question: Douglas Anmuth - JPMorgan Chase - Analyst : Thanks for taking questions. I have two. Just as you continue to see strength in rides with the 200 basis points of acceleration, but pricing is down 3% year per year, can you just talk about, what's driving the lower gross bookings per ride, particularly as you, continue to grow luxury modes? And are we seeing more discounts and promotions or just industry-wide pricing dynamics tied to insurance easing? And then maybe on to and just thinking about Delta, is there any shift or change from kind of how you were thinking about the 100 basis point impact to rides and 200 basis point impact from from gross bookings? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, LYFT.OQ - Q1 2025 Lyft Inc Earnings Call

Question: Douglas Anmuth - JPMorgan Chase - Analyst : Thank you, Erin.

Question: Steven Fox - Fox Advisors LLC - Analyst : Hi, good afternoon. Just one question, just following up on that last one. If we think more deeply about the Q2 guidance in terms of ride growth and monetizing per ride basis, like what would be the sort of how you would directionally talk about it. Is there any consideration for any consumer spending risks and then where would be some of the things you've highlighted on this call about growth on different platforms, what would be the major drivers? Would it still be commute leading the way or something else? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, LYFT.OQ - Q1 2025 Lyft Inc Earnings Call

Question: Steven Fox - Fox Advisors LLC - Analyst : Yeah, thank you. If you did want to follow up, I'd love to understand just the key headlines on how resilient the business could be and in the downturn. Thanks.